Bonds - McGraw-Hill Introduction to Business

[VIDEO] Why Hitting the Debt Ceiling Would Be ‘Catastrophic’

May 11, 2023

Lawmakers are once again butting heads about raising the debt ceiling, a limit on the total amount of money that the federal government is authorized to borrow. This video looks at the potential economic consequences that could follow if legislators fail to reach an agreement and default on the nation’s debt.

Questions:

How does debt help drive the U.S. economy?
Why are U.S. bonds traditionally seen as reliable investments? How could that change if the country defaults on its debt?

Ethics, Federal Reserve, Bonds, Securities, Regulation, Economics, Debt ceiling, Global

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law, Videos

The Dollar Soars as Global Currencies Struggle

July 22, 2022

NickelsMcHughMcHugh

The U.S. dollar is the world’s most important currency, serving as one side of 90 percent of all foreign exchange transactions. Before the pandemic, the U.S. dollar accounted for $6 trillion in daily activity as everyone from tourists to multinational corporations depended on this customarily stable currency. After the turmoil of the last few years, however, the dependable dollar has skyrocketed in value to its highest level in 20 years.

The value of the dollar has jumped 10 percent Continue reading →

Currency, Federal Reserve, Supply & Demand, Global, Inflation, Ethics, Bonds

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

[VIDEO] Why the U.S. Is Always Hitting a “Debt Ceiling”

November 2, 2021

NickelsMcHughMcHugh

As debates in Washington about raising the debt ceiling once again make the news, this video provides a comprehensive and straightforward explanation of the U.S. national debt. Along with examining the sale of government bonds, the video also considers whether or not the country should retain the debt limit.

Questions:

How does the sale of bonds benefit both investors and the government?
Do you think the U.S. should continue to maintain a debt limit? Why or why not?

Economics, Regulation, Securities Markets, Debt ceiling, Global, Ethics, Federal Reserve, Bonds, National debt

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law, Videos

[VIDEO] Why Investors Are Obsessed With the Inverted Yield Curve

August 23, 2019

NickelsMcHughMcHugh

Last Wednesday, the stock market tanked after the yield curve for the bond market became inverted, meaning that interest rates on short-term bonds grew higher than those paid on long-term bonds. The video below takes a look at this complicated concept and explains why the “inverted yield curve” can be a warning sign of a recession.

Questions:

What is the difference between short-term and long-term bonds?
Why do investors consider the inverted yield curve to be a potential sign of a recession?

Economics, Federal Reserve, Money Supply, Stock Market, Bonds, Inverted Yield Curve

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions